NYSE Dow Jones finished today at:

[bigdog]

Asian shares mixed as investors await central bank moves

Asian shares are mixed amid cautious trading ahead of a Federal Reserve Open Market Committee meeting.

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Major Wall Street stock indexes eke out more record highs

By DAMIAN J. TROISE and ALEX VEIGA

Stocks closed with modest gains on Wall Street Monday, extending the major indexes’ recent record-setting run.

The S&P 500 rose 0.2% after spending much of the day wavering between small gains and losses. The Dow Jones Industrial Average added 0.3% and the Nasdaq rose 0.6%. The gains pushed the three indexes above the all-time highs they set on Friday.

More than 65% of stocks in the S&P 500 rose, led by energy companies as the price of U.S. crude oil rose 0.6%, adding to a more than 75% gain so far this year. Exxon Mobil rose 1.8%. A mix of companies that rely on direct consumer spending for goods and services accounted for a big slice of the index’s gains. Tesla jumped 8.5% and Starbucks gained 3.5%.

Losses by technology, communication and health care companies kept the S&P 500′s gains in check. Microsoft fell 0.7%, Google parent Alphabet slid 3.1% and UnitedHealth Group dropped 1.4%.

Smaller company stocks far outpaced the broader market in a sign that investors were confident about economic growth. The Russell 2000 rose 2.7%, closing within 0.1% its all-time high set March 15.

The latest gains came as investors reviewed another batch of corporate quarterly report cards in what has so far been a better-than-expected earnings season, despite Wall Street’s concerns over the impact supply chain disruptions and higher inflation are having on companies.

“We’re starting to see corporate earnings come in and the fear was that you’d not have pricing power and you’d see that impact in margins,” said Tom Hainlin, national investment strategist at U.S. Bank Wealth Management. “But so far, we’re seeing companies either do one or both of two things: be able to raise prices and have consumers pay those prices or to use technology to improve efficiency to offset some of those input prices.”

The S&P 500 index rose 8.29 points to 4,613.67. The Dow gained 94.28 points to 35,913.64. The Nasdaq added 97.53 points to 15,595.92. The Russell 2000 picked up 60.93 points to 2,358.12.

Bond yields rose and helped banks make gains, as they rely on higher yields to charge more lucrative interest rates on loans. The yield on the 10-year Treasury rose to 1.56% from 1.55% late Friday.

The broader market is coming off its best month in nearly a year, with the S&P 500 gaining 6.9% in October. The index, which stumbled in September with a 4.8% loss, is now up 22.8% for the year. Stocks have been gaining ground for weeks as investors monitored a steady flow of mostly encouraging corporate earnings.

More than half of the companies in the benchmark S&P 500 index have already reported results. Analysts expect overall profit growth of 36% by the time reporting is finished. Another 167 companies within the index will report their results this week.

Pharmaceutical giant Pfizer will report its results on Tuesday and CVS Health will report results on Wednesday.

Investors will also be watching another policy meeting by the Federal Reserve, which is in the process of considering how to wind down its extraordinary support measures for the economy. The central bank will release its latest statement on Wednesday.

Rising inflation remains a concern and will likely be persistent, but will probably moderate through the end of the year, said Rod von Lipsey, managing director at UBS Private Wealth Management. Meanwhile, investors have been shifting their focus to earnings and other fundamental measures as they move past the uncertainty of COVID-19.

“Obviously we’re waiting to see what the Fed has to say, but there’s still plenty of room and capacity for the markets to continue this recovery,” he said.

Wall Street will get several more economic updates this week.

The Institute for Supply Management will release its service sector index for October on Wednesday. That will give investors a glimpse into how the sector, which accounts for the bulk of economic activity, is recovering after the surge of COVID-19 cases over the summer.

Investors will also get another update on the employment market when the Labor Department releases its jobs report for October on Friday.

ASX 200 expected to edge lower​

The Australian share market looks set to give back some of these gains on Melbourne Cup Day. According to the latest SPI futures, the ASX 200 is expected to open the day 7 points or 0.1% lower this morning.

This follows a mixed start to the week on Wall Street which on closing sees the Dow Jones up 0.26%, the S&P 500 up 0.18%, and the Nasdaq trading 0.63% higher.

 

[bigdog]

Asian shares mostly lower despite Dow's push over 36,000

Shares are mostly lower in Asia, weighed down by concerns over disrupted supply chains and shipping, despite the Dow Jones Industrial Average's first close above 36,000 points.

apnews.com

Stocks gain, pushing the Dow Jones industrials over 36,000

By DAMIAN J. TROISE and ALEX VEIGA

Wall Street added to its recent run of milestones Tuesday as stock indexes hit new highs again and the Dow Jones Industrial Average closed above 36,000 points for the first time.

The Dow and benchmark S&P 500 each rose 0.4%. The Nasdaq gained 0.3%. The three indexes also notched all-time highs on Monday.

The gains were broad, with all but two of the 11 sectors in the S&P 500 closing higher. Technology and health care stocks helped power much of the advance. Losses in energy stocks and a mix of companies that rely on direct consumer spending tempered the market’s gains.

Trading continued to be wobbly, with the major indexes all briefly slipping into the red before recovering. The latest modest gains came ahead of more news this week from the Federal Reserve and on the jobs market. Investors were also reviewing a heavy load of corporate earnings for more clues as to how companies are faring as the economy moves past the virus pandemic.

Wall Street has been pleasantly surprised that corporate earnings reports have proven to be stronger than expected, despite worries about the impact on profits from supply disruptions and rising inflation.

“They seem to be dealing with the supply chain issue, as far as revenue and costs go, so far,” said Liz Young, chief investment strategist at SoFi. “We all expected that third-quarter earnings might be held back slightly by some of those pressures.”

The S&P 500 index extended its winning streak into a fourth day Tuesday, rising 16.98 points to 4,630.65. The Dow gained 138.79 points to 36,052.63, and the tech-heavy Nasdaq added 53.69 points to 15,649.60.

Small-company stocks also bounced back from an early pullback, nudging the Russell 2000 index to its first all-time high since March. The Russell gained 3.74 points, or 0.2%, to 2,361.86.

Technology stocks made solid gains. Cloud networking company Arista Networks surged 20.4% for the biggest gain in the S&P 500 after giving investors an encouraging financial forecast following a strong third-quarter report.

Health care stocks also rose. Prescription drug distributor McKesson gained 5.2% after raising its profit forecast. Pfizer gained 4.1% after delivering a strong profit report.

Bond yields slipped. The yield on the 10-year Treasury fell to 1.54% from 1.57% late Monday.

Crude oil prices slipped 0.2% and weighed down energy stocks. Exxon Mobil fell 1.2%.

Wall Street has been focusing on a steady flow of corporate earnings over the last few weeks. The results helped drive gains for the major indexes after a choppy summer when COVID-19 cases surged. That wave has since subsided, but rising inflation as the economy recovers remains a key concern.

Investors will be focused on the latest comments from the Federal Reserve’s latest policy meeting Wednesday, when the central bank is expected to disclose plans to ease the extraordinary support measures put in place at the beginning of the pandemic to shore up the markets and economy.

Chair Jerome Powell has signaled the Fed will announce after its policy meeting that it will start paring its $120 billion in monthly bond purchases as soon as this month. Those purchases are intended to keep long-term loan rates low to encourage borrowing and spending.

“We all know the Fed is going to unwind, what’s not known is the language around employment and how the Fed frames what success looks like,” said Robert Schein, chief investment officer at Blanke Schein Wealth Management.

The employment market recovery has been a key focus for the central bank. The job market has been improving, but it has mostly lagged the rest of the economic recovery as people are hesitant to return to work despite an abundance of job openings. Investors will get another update Friday when the Labor Department releases its jobs report for October.

The central bank’s plan to trim its bond purchases also comes as businesses and consumers contend with higher prices for raw materials and finished goods. Supply chain problems are cutting into corporate finances and prompting companies to raise prices.

Investors will get another update on services, which make up a big part of the economy, when the Institute for Supply Management releases its service sector index for October on Wednesday.

ASX 200 poised to storm higher​

The Australian share market looks set to storm higher on Wednesday. According to the latest SPI futures, the ASX 200 is expected to open the day 75 points or 1% higher this morning.

This follows a positive night on Wall Street, which on closing sees the Dow Jones up 0.39%, the S&P 500 up 0.37%, and the Nasdaq trading 0.34% higher.

 

[bigdog]

Asian shares rise after Fed says economic aid will wind down

Asian shares are rising, boosted by the announcement from the U.S. Federal Reserve on winding down the extraordinary aid for the economy it been providing since early in the pandemic.

apnews.com

Stocks rise after Fed says it will dial back aid for economy

By DAMIAN J. TROISE and ALEX VEIGA

Stock indexes on Wall Street shrugged off a downbeat start and notched more record highs Wednesday after the Federal Reserve announced plans to begin reducing the extraordinary aid for the economy it has been providing since the early days of the pandemic.

The S&P 500 rose 0.6% and the Dow Jones Industrial Average added 0.3%, both marking their fifth straight gain. The Nasdaq climbed 1%, extending its winning streak to an eighth day. All three indexes set their latest record closing highs a day earlier.

In a statement released at 2 p.m. Eastern, the Fed said it will begin reducing its $120 billion in monthly bond purchases in the coming weeks by $15 billion a month. If that pace is maintained, the Fed could be done winding down its bond purchases as early as June. At that point, the Fed could decide to begin raising its key short-term interest rate, which affects many consumer and business loans.

The central bank reserved the right to change the rate at which it reduces the bond purchases, which have been intended to hold down long-term rates and spur borrowing and spending.

The Fed’s announcement was in line with what economists and markets expected as the central bank moves to combat inflation that now looks likely to persist longer than it did just a few months ago.

“Much of the bond tapering announcement was already priced into markets and shouldn’t have come as a surprise to anyone that was paying attention to what the Fed has been indicating for most of this year,” said Chris Zaccarelli, chief investment officer for Independent Advisor Alliance. “But the markets are already turning their attention to how soon the Fed will begin raising interest rates and how quickly they will raise them.”

The S&P 500 rose 29.92 points to 4,660.57. The Dow gained 104.95 points to 36,157.58. The Nasdaq added 161.98 points to 15,811.58.

Bond yields rose broadly after the Fed’s statement. The yield on the 10-year Treasury note rose to 1.59% from 1.54% late Tuesday. It was trading at 1.57% shortly before the Fed released its policy statement.

The Fed’s latest statement and policy shift comes amid persistent rising inflation that has cut into corporate operations and raised prices on raw materials. It is also making finished goods more expensive, raising concerns about whether consumers will cut back on spending as prices rise.

At a news conference Wednesday, Fed Chair Jerome Powell stressed that the outlook for inflation looks highly uncertain, limiting the ability of the Fed to tailor its policies in response. He suggested that inflation should slow sometime next year as supply bottlenecks ease, but that the Fed cannot be certain that it will.

The central bank and investors have also been closely monitoring the recovery in the employment market, which has been lagging the broader economic recovery. The Labor Department will release its jobs report for October on Friday.

Stocks mostly wobbled in the early going Wednesday ahead of the Fed statement as investors looked over another big batch of earnings reports from U.S. companies.

Technology stocks and a mix of companies that rely directly on consumer spending accounted for a big slice of the S&P 500′s gains. Adobe rose 2.3% and Tesla rose 3.6% to a record high.

Energy stocks fell as U.S. crude oil prices slid 3.6%. Chevron dropped 0.7%.

Smaller-company stocks outpaced the broader market in a sign that investors were feeling confident about economic growth. The Russell 2000 climbed 42.42 points, or 1.8%, to 2,404.28, its second straight all-time high.

Agricultural equipment maker Deere fell 3.4%. Workers at the company rejected a contract offer Tuesday that would have given them 10% raises and decided to remain on strike in the hopes of securing a better deal.

Investors were handed a mixed bag of corporate report cards. Activision Blizzard slumped 14.1% for the biggest slide in the S&P 500 after the maker of video games like “World of Warcraft” gave investors a disappointing profit forecast. Zillow Group sank 23% in heavy trading a day after the real estate website operator reported disappointing financial results and said it is shutting down its home-flipping business.

CVS Health rose 5.7% after the drugstore chain and pharmacy benefits manager raised its profit forecast for the year following a strong third quarter. Mondelez International rose 1.6% after the maker of Oreo cookies reported solid third-quarter financial results.

ASX 200 expected to rise again​

The Australian share market looks set to rise on Thursday. According to the latest SPI futures, the ASX 200 is expected to open the day 29 points or 0.4% higher this morning.

This follows a solid night on Wall Street, which on closing sees the Dow Jones up 0.29%, the S&P 500 up 0.65%, and the Nasdaq up 1.04%.

 

[bigdog]

Asian shares mostly lower after fresh Wall St records

Shares are mostly lower in Asia, with Chinese markets weighed down by concerns over property developers.

apnews.com

Despite a mixed finish, S&P 500 and Nasdaq notch records

By DAMIAN J. TROISE and ALEX VEIGA

Stock indexes closed out another wobbly day of trading on Wall Street with an uneven finish Thursday that includes more all-time highs for the S&P 500 and Nasdaq.

The benchmark S&P 500 rose 0.4%, extending its winning streak to a sixth day. The index has notched a succession of record-high closes, often on days when the market got off to a downbeat start.

The Nasdaq climbed 0.8%, its ninth-straight gain and latest record high for the tech-heavy index. The Dow Jones Industrial Average slipped less than 0.1%, ending the blue-chip index’s five-day winning streak.

More companies in the S&P 500 fell than rose, but gains by several big technology companies helped outweigh losses elsewhere in the market.

Despite the mixed outcome, the market’s latest milestones underscore how traders remain in a buying mood, encouraged by solid company earnings and by the Federal Reserve’s decision, at least for now, to only slowly begin dialing back policies aimed at spurring U.S. economic growth when it was in the throes of the pandemic recession.

On Wednesday, the Fed said it will begin reducing its $120 billion in monthly bond purchases in the coming weeks by $15 billion a month. The central bank could decide to raise its short-term interest rate, which affects many consumer and business loans, from near zero. Many market watchers concluded that the Fed was moving cautiously in dialing back its support, which is good news for Wall Street.

“Ninety percent of it is ultra-loose monetary policy,” said Jay Hatfield, CEO of Infrastructure Capital Advisors, on what helped push stocks to more new highs Thursday.

“The very mechanism that’s causing inflation to rise is also causing asset prices to rise, so therein lies the dilemma,” he said. “The fact that we’re not going to have a corporate tax increase is also wildly bullish.”

The S&P 500 rose 19.49 points to 4,680.06. The index is on pace for its fifth straight weekly gain. The last time that happened was during July and August of last year.

The Dow fell 33.35 points to 36,124.23, while the Nasdaq added 128.72 points to 15,940.31.

Small company stocks also gave up some ground. The Russell 2000 index slipped 1.85 points, or 0.1%, to 2,402.43.

Investors continued to focus on the latest round of corporate earnings. Chipmaker Qualcomm jumped 12.7% after it gave investors an encouraging profit forecast and reported strong quarterly results. Other chipmakers also rallied. Nvidia rose 12% and Advanced Micro Devices rose 5.3%.

A mix of companies that rely on direct consumer spending for goods and services also made solid gains. Tesla rose 1.3%, eclipsing the all-time high it set a day earlier.

Bond yields fell. The yield on the 10-year Treasury fell to 1.52% from 1.58% late Wednesday. The lower yields weighed down banks, which rely on higher yields to charge more lucrative interest on loans. Bank of America fell 2.2%.

Solid earnings and financial forecasts helped video game maker Electronic Arts gain 2.1% and Take-Two Interactive rise 4.8%.

Moderna sank 17.9% after cutting its forecast for how many vaccine deliveries it expects to make this year. Merck rose 2.1% after British authorities approved its antiviral pill.

A key concern for investors amid the latest round of earnings has been the impact of supply chain problems on corporate profits and operations. Roku is the latest company to suffer because of those disruptions and higher costs. The video streaming company fell 7.7% after giving investors a weak sales forecast and warning that supply chain problems will likely continue into 2022.

Inflation concerns will likely focus more investor attention toward how companies maintain their profit margins through the rest of the year, rather than measuring profit growth, said Liz Ann Sonders, chief investment strategist at Charles Schwab.

“The market is realizing that the tailwind of perpetually improving earnings is dissipating,” she said.

Investors received an encouraging update on the employment market’s recovery. The Labor Department reported on Thursday that the number of Americans applying for unemployment benefits fell to another pandemic low last week, another sign the job market is healing after last year’s coronavirus recession. The agency will release its more detailed jobs report for October on Friday.

ASX 200 expected to rise again​

The Australian share market looks set to end the week on a positive note. According to the latest SPI futures, the ASX 200 is expected to open the day 23 points or 0.3% higher.

This follows a decent night of trade on Wall Street, which on closing sees the Dow Jones down 0.09%, but the S&P 500 up 0.42% and the Nasdaq up 0.81%.

 

[bigdog]

S&P 500 sets seventh straight all-time high on Wall Street

U.S. stocks pushed further into record heights on Friday following an encouraging report on hiring across the country.

apnews.com

S&P 500 sets seventh straight all-time high on Wall Street

By DAMIAN J. TROISE and STAN CHOE

U.S. stocks pushed further into record heights on Friday following an encouraging report on hiring across the country, though trading was shaky as the bond market was hit with another day of sharp swings.

The S&P 500 rose 17.47, or 0.4%, to 4,697.53 and clinched an all-time high for the seventh straight day. The Dow Jones Industrial Average gained 203.72, or 0.6%, to 36,327.95, and the Nasdaq composite added 31.28, or 0.2%, to 15,971.59.

Trading was scattershot, though, and after climbing to an early gain of 0.8%, the S&P 500 at one point gave up virtually all of it. Stocks retrenched in the middle of the day as Treasury yields surprisingly slumped. A measure of nervousness in the stock market also made a U-turn higher around the same time.

The 10-year yield, which tends to move with expectations for the economy and inflation, dropped to 1.45% and is near its lowest level since September. It was at 1.58% just two days earlier. Analysts had varying explanations for that and other sharp moves in the bond market, which some called counterintuitive.

The Dow and Nasdaq nevertheless still joined the S&P 500 in setting all-time highs. The smaller stocks in the Russell 2000 performed even better, jumping 1.4%

An encouraging report from Pfizer helped to lift the market, particularly companies that most need daily life to return to normal from the pandemic. Pfizer rose 10.9% after it said its experimental pill sharply cut rates of hospitalization and death for COVID-19 patients. Airlines, casinos, cruise lines and live-event companies had similar jumps.

The headline report of the day was the one from the Labor Department that showed employers hired a net 531,000 workers in October. That was more than 100,000 above economists’ expectations. The gains were widespread across industries, and the government also revised higher the numbers for job growth in earlier months.

One potential worry spot for markets was a big jump in workers’ wages, up 4.9% from a year earlier, which can feed into concerns about inflation. But the numbers were relatively in line with economists’ expectations.

“It was one of those Goldilocks reports,” said Nate Thooft, head of global asset allocation at Manulife Investment Management. Besides showing stronger-than-expected hiring, “the simple reality was it wasn’t showing any overheating either.”

That’s why it was surprising that the 10-year Treasury yield fell so sharply to 1.44% from 1.52% late Thursday.

One possible reason was that investors see more people heading back to work as helping to clear the supply-chain bottlenecks that have hit the economy and driven up inflation, said Brian Jacobsen, senior investment strategist at Allspring Global Investments. That could lead to lowered expectations for inflation, which would add downward pressure on Treasury yields.

“The more people we get back to fill open positions will help keep that shortage pressure at bay a little bit,” said Matt Stucky, senior portfolio manager at Northwestern Mutual Wealth Management Co.

But the degree of moves in the bond market still took market watchers by surprise.

“Some of these moves look extreme to me,” Allspring Global Investment’s Jacobsen acknowledged, citing a sharp drop for the 30-year Treasury yield to 1.88% from 1.96%. “I don’t think we can justify where yields are. It leads me to believe that this is some rather rapid repositioning by traders in the market and not necessarily a change in the trend.”

A day earlier, bond markets around the world shook after the Bank of England decided not to raise interest rates. Many investors had thought it was nearly a sure thing, and the inaction sent yields sliding.

For stocks, the trend has been solidly upward recently as a parade of companies has reported stronger profit for the summer than analysts expected. More than four out of five companies in the S&P 500 have topped forecasts, with roughly 90% of reports in hand, according to FactSet. Companies in the index appear on track to report 39% growth in their quarterly earnings per share over year-ago levels, which would be the third-fastest since 2010.

Online travel company Expedia jumped 15.6% and home-sharing company Airbnb rose 13% after they each reported stronger profits than expected.

On the losing end was exercise equipment maker Peloton Interactive. It plunged 35.3% after turning in profit and revenue that fell short of Wall Street’s expectations.

Health care stocks were also lagging the market. Moderna slumped 16.6% as it continued to fall after cutting its forecast on Thursday for vaccine deliveries in 2021.

 

[bigdog]

ASX 200 expected to rise again​

The Australian share market looks set to have a positive start to the week. According to the latest SPI futures, the ASX 200 is expected to open the day 22 points or 0.3% higher this morning.

This follows a solid end to the week on Wall Street, which saw the Dow Jones rise 0.55%, the S&P 500 climb 0.4%, and the Nasdaq push 0.2% higher.

 

[bigdog]

Asian stock markets mixed after Wall St hits record again

Asian stock markets are mixed after Wall Street rose to a record for an eighth day. Tokyo and Sydney advanced while Shanghai, Hong Kong and Seoul declined.

apnews.com

Another day, another record on Wall Street as stocks inch up

By DAMIAN J. TROISE and STAN CHOE

Wall Street clawed its way to more records on Monday, with stock indexes creeping higher after another listless day of trading.

The S&P 500 inched up by 4.17 points, or 0.1%, to 4,701.70 after drifting between a small loss and gain through the day. It’s the eighth straight day the index has set an all-time high, tying its longest winning streak since April 2019, though most of the gains during this stretch have been only modest.

The Dow Jones Industrial Average rose 104.27, or 0.3%, to 36,432.22, and the Nasdaq composite gained 10.77, or 0.1%, to 15,982.36. They also set records, as did the smaller stocks in the Russell 2000 index, which rose 0.2%.

Stocks of construction-related companies made some of the strongest gains after Congress passed a $1 trillion infrastructure bill on Friday. Vulcan Materials, which sells crushed stone and concrete, rose 4.9%. Equipment-maker Caterpillar rose 4.1%.

More broadly, the stock market has been climbing over the last month as a wave of reports has shown corporate profits were stronger during the summer than analysts expected. That’s helped calm investors’ concerns about inflation and the Federal Reserve starting to pull back on its massive efforts to support markets and the economy.

Slightly more stocks rose in the S&P 500 than fell on Monday, with technology companies among those offsetting losses for utilities and companies that sell directly to consumers.

Advanced Micro Devices jumped 10.1% for the biggest gain in the S&P 500 after announcing that Facebook parent company Meta had chosen to use chips from AMD in its data centers. Chipmaker Nvidia rose 3.5%.

Steelmakers and other companies that stand to benefit from increased infrastructure spending also rallied following Congress’ passage of the infrastructure bill. Nucor gained 3.6%.

Friday’s deal eased some concerns over gridlock in Washington as a potential fight over raising the debt ceiling looms, according to Jamie Cox, managing partner at Harris Financial Group.

“Markets had sort of come to the conclusion that infrastructure was going to take longer,” he said. “But it looks like maybe the logjam is broken; it really reduces the chances we’ll have a fireworks-laden Christmas.”

Social networking company Nextdoor Holdings jumped 17% in its market debut via a merger with a special purpose acquisition company.

On the losing end was Tesla, which fell 4.8% after CEO Elon Musk said he would sell 10% of his holdings in the company based on the results of a poll he conducted on Twitter over the weekend.

The latest round of corporate earnings is starting to wind down, but investors still have several report cards from some big companies to review. Health care services and products company Cardinal Health will report its financial results on Tuesday and entertainment giant Walt Disney will report earnings on Wednesday.

Wall Street will also get several updates on inflation this week. Rising inflation remains a key concern as companies contend with higher raw materials costs and supply chain problems, while consumers face higher prices.

The Labor Department will release its monthly update on inflation at the wholesale level on Tuesday. The report showing what consumers are paying will come a day later. .

The yield on the 10-year Treasury rose to 1.50% from 1.45% late Friday.

ASX 200 expected to rise​

The Australian share market looks set to rebound on Tuesday. According to the latest SPI futures, the ASX 200 is expected to open the day 12 points or 0.15% higher this morning.

This follows a decent start to the week on Wall Street, which on closing sees the Dow Jones up 0.29%, the S&P 500 up 0.09%, and the Nasdaq trading 0.07% higher.

 

[bigdog]

Stocks retreat in Asia as China inflation pushes higher

Asian shares have tracked Wall Street's retreat, with Chinese benchmarks leading the decline after the government reported a surge in inflation in October.

apnews.com

Stocks end lower on Wall Street, ending 8-day winning streak

By DAMIAN J. TROISE

Stocks ended moderately lower on Tuesday, ending an eight-day winning streak for the market that had been fueled by strong company earnings and economic data.

The S&P 500 index lost 16.45 points, or 0.4%, to close at 4,685.25. The last time the S&P 500 had eight straight days of gains was April 2019. The Dow Jones Industrial Average fell 112.24 points, or 0.3%, ending at 36,319.98 and the Nasdaq lost 95.81, or 0.6%, to 15,886.54.

The market was pulled lower by companies that rely on consumer spending and technology stocks, which had driven the market higher in recent days.

Tesla lost 12% after its founder Elon Musk said he would sell 10% of his holdings in the electric car maker, based on the results of a poll he conducted on Twitter. The company’s stock is down more than 16% so far this week, however the stock is still up 45% so far this year.

Meanwhile PayPal — coincidentally a company co-founded by Musk more than two decades earlier — dropped 11% after the company’s cut its full-year outlook and revenue forecasts.

PayPal is facing increased competition from other financial technology companies like Square, Affirm and even traditional banks, who have moved decisively into PayPal’s online payments kingdom.

Robinhood fell 3.4% after the popular trading app reported a data breach the day before.

Bond yields also fell Tuesday. That pulled down the stock prices of banks, which rely on higher yields to charge more lucrative interest on loans. The yield on the 10-year Treasury fell to 1.44% from 1.49% late Monday.

Bank stocks like Citigroup, Bank of America and JPMorgan Chase closed down roughly 1% or more.

One stock that did well was General Electric, which rose 2.6%. The once-unstoppable corporate behemoth that made everything from lightbulbs to nuclear reactors announced it would break itself into three separate companies.

The combination of chronic mismanagement, years of asset sales, as well as new regulations after the Great Recession made GE a shell of what it used to be. It no longer makes appliances, no longer owns NBCUniversal and spun off its financing arm, GE Capital, years before.

Sectors that are considered less risky, including household product makers and utilities, held up better than the rest of the market.

Investors received another reminder from the Labor Department that rising inflation remains persistent. The agency reported that inflation at the wholesale level rose 8.6% in October from a year earlier, matching September’s record annual gain.

A wide range of companies are facing higher costs for raw materials and energy while contending with supply chain problems. That has been cutting into their operations and prompting them to raise prices on finished goods, which in turn has been making products and services more costly for consumers.

The Labor Department will release its Consumer Price Index for October on Wednesday, giving a more detailed picture on how inflation is impacting consumers.

Inflation remains a key concern for investors, especially as the Federal Reserve moves ahead with plans to trim back, or taper, its bond purchases that have helped maintain low interest rates.

“The Fed did such a good job of telegraphing it, but there is still the mechanics of the actual tapering,” said Ross Mayfield, investment strategist at Baird.

The latest round of earnings is nearing its end, but investors still have several big corporate report cards to review. Walt Disney will report its results on Wednesday. Tapestry, the owner of Coach and other luxury brands, will report its results on Thursday.
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ASX 200 poised to rise​

The Australian share market looks set to rebound on Wednesday despite Wall Street coming under pressure overnight. According to the latest SPI futures, the ASX 200 is expected to open the day 17 points or 0.25% higher this morning.

On Wall Street closing, the Dow Jones was down 0.31%, the S&P 500 was down 0.35%, and the Nasdaq is trading 0.6% lower.

 

[bigdog]

Asian shares mixed after US inflation report

Asian shares are trading mixed after a worrisome report on U.S. inflation that slammed into the bond market and knocked stocks lower on Wall Street.

apnews.com

Hot inflation report slams bond market, sends stocks lower

By DAMIAN J. TROISE and STAN CHOE

An eye-opening report on inflation that was hotter than expected slammed into the bond market on Wednesday, sending yields jumping and helping knock stocks lower.

Prices for beef, electricity and other items that consumers paid in October surged from year-ago levels at the fastest overall pace since 1990, raising expectations that the Federal Reserve will have to hike short-term interest rates more quickly off their record low. That sent Treasury yields to their biggest gains in months.

Rising yields tend to be a drag on stocks, particularly those seen as the most expensive or whose expectations for big profit growth is furthest in the future. Drops for several high-growth tech stocks weighed on Wall Street, as did a slide in energy stocks following a decline in the price of crude oil.

The S&P 500 lost 38.54, or 0.8%, to 4,646.71 for its second straight drop. It’s coming off a strong run where it set a record high in each of the prior eight days.

The Nasdaq composite, which has more tech stocks, dropped more. It lost 263.84, or 1.7%, to 15,662.71.

Worries about inflation stoked other areas of the market. Gold rose 1% and is close to its highest price since June. Bitcoin, which some proponents see as offering similar protection from inflation as gold, likewise climbed. It touched a record of nearly $68,991, according to CoinDesk.

The center of Wall Street’s action, though, was in the bond market.

Pushed by the inflation report, investors are now pricing in a 66.5% chance that the Fed will raise rates by the end of June. A day earlier, that probability was at 50.9%.

The Fed has been keeping overnight rates at a record low of nearly zero since March 2020 to resuscitate markets and the economy from the pandemic. It has already begun to pare back on the bond purchases it makes every month to keep longer-term rates low.

The two-year Treasury yield tends to move with expectations for Fed action, and it leaped to 0.51% from 0.41% late Tuesday, a significant move.

Longer-term Treasury yields also rose, with the 10-year yield up to 1.57% from 1.43%.

In the stock market, higher yields tend to favor stocks that look cheap, or at least cheaper than their peers. These are often called “value” stocks to distinguish them from stocks of high-growth companies.

“It’s a fight between growth and value, and neither one is really getting the upper hand lately,” said Tom Martin, senior portfolio manager with Globalt Investments. “You’re going to have a decent market until year end and at some point, you’ll see folks really starting to try to position themselves for what they think 2022 could look like.”

Drops for some high-growth and tech stocks caused the heaviest weights on the market because they’re among the bigest companies by value. Nvidia, Facebook’s parent company, Google’s parent company, Apple and Microsoft all fell between 1.5% and 3.9%.

A 3.3% drop in the price of U.S. oil also helped to drag energy stocks to the biggest loss among the 11 sectors that make up the S&P 500.

But nearly two out of five stocks within the index nevertheless rose, with gains for health care stocks and others helping to limit losses for the market. Pfizer rose 3.6%.

Tesla also regained some of its lost ground from the prior two days after its CEO, Elon Musk, said that he would sell 10% of his stake in the company. It rose 4.3%, though it remains down 12.6% for the week.

Rivian Automotive, an electric truck maker backed by Amazon and Ford, glided 29.1% higher in its first day of trading.

Stocks have been rising broadly in recent weeks, powered by reports showing corporate profits were even stronger during the summer than analysts expected. Many of those reports showed that companies were able to pass on the higher prices they were paying to their customers, preserving their profitability.

DoorDash rose 11.6% after reporting stronger-than-expected revenue for its latest quarter and announcing that it is buying Finnish delivery service Wolt Enterprises, expanding its reach into Europe and other markets.

This earnings season is wrapping up, with more than 90% of S&P 500 reports already in hand. But several big names are still to come, particularly in the retail industry.

ASX 200 expected to fall again​

The Australian share market looks set to fall on Thursday. According to the latest SPI futures, the ASX 200 is expected to open the day 6 points or 0.1% lower this morning.

This follows a poor night on Wall Street, which on closing sees the Dow Jones down 0.66%, the S&P 500 down 0.82%, and the Nasdaq down 1.66%. The highest US inflation reading in 30 years appears to have spooked investors and caused a spike in bond yields.

 

[bigdog]

Asian shares open higher after modest gains on Wall St

Shares are mostly higher in Asia after Wall Street benchmarks managed to close mostly higher. Stocks advanced in Tokyo, Hong Kong, Shanghai, Seoul and Sydney in early trading.

apnews.com

Stocks eke out small gains, still headed for weekly loss

By DAMIAN J. TROISE

Stocks eked out small gains on Wall Street Thursday, but major indexes are still headed for a weekly loss after being tripped up by a disconcerting report on rising inflation.

The latest round of mostly solid corporate earnings has been winding down after helping the broader market rise for weeks and reach a series of records. Inflation concerns have been rattling investors throughout the week, however. The benchmark S&P 500 is on track for its first weekly loss in six weeks.

“It’s a pretty simple rule to be long during earnings and cautious outside of earnings,” said Jay Hatfield, CEO of Infrastructure Capital Advisors, “Earnings ends and then the stock market is a victim of other data, which tends to be bad.”

The S&P 500 rose 2.56 points, or 0.1%, to 4,629.27. The Dow Jones Industrial Average fell 158.71 points, or 0.4%, to 35,921.23 largely due to a steep drop in Walt Disney. The Nasdaq rose 81.58 points, or 0.5%, to 15,704.28.

Technology stocks did most of the heavy lifting for the benchmark S&P 500 and chipmakers were particularly strong. Nvidia rose 3.2% and Qualcomm rose 2.9%. Banks also made solid gains. Citigroup rose 1%.

Coach and Kate Spade owner Tapestry jumped 8.4% after reporting strong fiscal first-quarter financial results.

Smaller-company stocks outpaced the broader market in a sign that investors were confident about economic growth. The Russell 2000 rose 0.8%.

Communications companies were dragged down by Walt Disney. The entertainment company slumped 7.1% after reporting a slowdown in subscriber gains at its streaming channel and weak fiscal fourth-quarter financial results.

Beyond Meat dropped 13.3% after reporting a much wider loss than analysts were expecting.

The muted gains on Thursday follow a broad drop on Wednesday when every major index slipped over a hotter-than-expected inflation report from the Labor Department that revealed a surge in consumer prices in October. That report came on the heels of data on Tuesday that showed inflation at the wholesale level also surged in October.

The inflation concerns pushed bond yields broadly higher on Wednesday, though the bond market was closed for Veterans Day on Thursday. The yield on the 10-year Treasury stood at 1.55% as of late Wednesday.

Companies have been warning that they are being squeezed by higher raw materials costs and supply chain problems. Many have been able to pass off those higher costs to consumers, but that has raised concerns about higher prices eventually prompting a pullback in consumer spending.

The latest report on consumer prices revealed that inflation is hitting essential items such as food, rent, autos and heating oil particularly hard. Analysts worry that consumers could cut spending on discretionary items to focus on essentials, which could then crimp the broader economic recovery.

Concerns about rising inflation are also raising expectations that the Federal Reserve will have to raise short-term interest rates more quickly off their record low. The central bank has already begun to pare back on the bond purchases it makes every month to keep longer-term rates low.

“The weird thing is what’s hurting the economy is also supporting the stock market,” Hatfield said, referring to the Fed’s stimulus measures.

ASX 200 expected to rise​

The Australian share market looks set to end the week on a positive note. According to the latest SPI futures, the ASX 200 is expected to open the day 34 points or 0.45%.

This follows a largely positive night of trade on Wall Street, which on closing sees the Dow Jones down 0.44%, but the S&P 500 up 0.06% and the Nasdaq up 0.52%.

 

[bigdog]

Stocks close higher, but indexes still end week in the red

Stocks closed higher on Wall Street on Friday, but still marked their first weekly loss in six weeks. Technology and communications companies led the modest gains.

apnews.com

Stocks close higher, but indexes still end week in the red

By DAMIAN J. TROISE

Stocks closed higher on Wall Street on Friday, but the market still ended the week lower as inflation worries weighed on investors’ moods earlier in the week.

The S&P 500 index added 33.58 points, or 0.7%, to end at 4,682.85. While it closed higher, the benchmark index still ended the week down 0.3%. It was the first weekly loss for the S&P 500 in six weeks.

The Dow Jones Industrial Average rose 179.08 points, or 0.5%, to 36,100.31 and the Nasdaq composite closed up 156.68 points, or 1%, to end at 15,860.96. The Dow lost 0.6% for the week and the Nasdaq lost 0.7%.

Technology stocks were among the biggest gainers on Friday, with chipmaker Micron Technology rising 3.7% and Apple rising 1.4%. Communications, industrial and health care companies also rose. Spectrum Brands, owner of Cutter bug spray and George Foreman grills, soared 10% after reporting strong quarterly earnings.

Johnson & Johnson shares rose 1.2% after the company announced it would divide itself into two separate businesses. The company would split its its Band-Aids and Listerine business from its medical device and prescription drug business. It’s the second big conglomerate to break itself up this month, after General Electric announced it would also split itself into three separate companies.

Banks and energy stocks lagged the market. Bank of America slipped 1.5%. The KBW Bank Index of the 24 largest banks closed down 0.2%.

Lordstown Motors dropped nearly 18% after giving investors a discouraging production update, with delays stretching to the third quarter of 2022. Tesla fell 2.8% after CEO Elon Musk sold another chunk of his stock on following a pledge on Twitter to liquidate 10% of his holdings in the electric car maker.

Bond yields edged higher. The yield on the 10-year Treasury rose to 1.57% from 1.55% from late Wednesday. The bond market was closed on Thursday.

The recent winning streak for stocks, which produced a series of record highs for the major indexes, came to an end as investors shifted focus from corporate earnings to rising inflation.

Investors reviewed mostly solid corporate report cards over the last several weeks. A wide range of companies showed that they were able to successfully navigate both the summer surge of COVID-19 cases and lingering supply chain problems.

Rising inflation, though, has been a lingering concern, with companies warning that higher raw materials costs and supply chain disruptions could crimp their finances. Prices have also been rising for consumer goods and essential items, raising concerns that people could pull back on spending and hurt the economic recovery.

Those inflation concerns were further stoked this week with discouraging reports on price increases for companies and consumers. On Tuesday, the Labor Department reported that inflation at the wholesale level surged to a record high in October. On Wednesday, the agency gave Wall Street a hotter-than-expected inflation report that showed consumer prices also surged, hitting their fastest overall pace since 1990.

Outside of inflation concerns, investors are also closely watching for data that could give a clearer picture of how various parts of the economy are recovering. The Labor Department on Friday released data that showed Americans quit their jobs at a record pace for the second straight month in September. The figures point to a historic level of turmoil in the job market as newly-empowered workers quit jobs to take higher pay that is being dangled by businesses in need of help.

Wall Street will get another update on spending Tuesday when the Commerce Department releases its retail sales report for October. There are still several big companies on deck to report earnings and give investors a better sense of how the retail industry is doing. Home Depot and Walmart will report their results on Tuesday and Target will report its results on Wednesday. Macy’s will report earnings on Thursday.

 

[bigdog]

ASX 200 expected to edge lower​

The Australian share market looks set to have a subdued start to the week. According to the latest SPI futures, the ASX 200 is expected to open the day 3 points lower this morning.

This is despite it being a solid end to the week on Wall Street, which saw the Dow Jones rise 0.5%, the S&P 500 climb 0.72%, and the Nasdaq storm 1% higher.

 

[bigdog]

Asian stocks rise as Biden, Xi hold video summit

Asian stock markets are higher as President Joe Biden and China’s Xi Jinping hold a summit meeting by video link.

apnews.com

US stock indexes end wobbly day mostly lower on Wall Street

By DAMIAN J. TROISE

Stocks closed mostly lower after wobbling most of Monday on Wall Street as the market comes off its first weekly loss in six weeks and investors move past the recent round of mostly solid corporate earnings.

The S&P 500 fell less than 1 point, or less than 0.1% to 4,682.80. The Dow Jones Industrial Average fell 12.86 points, or less than 0.1%, to 36,087.45. The Nasdaq fell 7.11 points, or less than 0.1%., to 15,853.85.

Trading was choppy as rising and falling sectors rotated throughout the day. Energy companies started the day weak, but gained ground by late afternoon as U.S. crude oil prices reversed from losses to a slight gain. Chevron rose 2.3%

Utilities and makers of household goods, which are considered less risky, made some of the broadest gains.

Bond yields rose. The yield on the 10-year Treasury rose to 1.63% from 1.58% late Friday.

Communications companies were mixed after bouncing up and down throughout the day. Technology and health care stocks fell, countering gains elsewhere in the market.

Investors are shifting their focus from the latest round of mostly solid corporate report cards to broader economic issues. That includes supply chain problems, rising inflation and other issues that will determine the pace and breadth of economic growth through the rest of the year and into 2022.

Smaller-company stocks fell more than the rest of the market. The Russell 2000 fell 0.4%.

“You’re going to see a lot of give and take in this market because of the uncertainty over inflation,” said Megan Horneman, director of portfolio strategy at Verdence Capital Advisors. “It’s going to be a much more challenging situation because people are anticipating a good holiday season, but are unsure about the catalysts for next year.”

Companies that rely on consumer spending, such as retailers, were mixed. Dollar Tree jumped 14.3% following reports that activist investor Mantle Ridge plans to push the discount retailer to take measures to increase its stock value.

Tesla continued sliding after CEO Elon Musk’s latest move to sell a chunk of his stock. The electric vehicle maker’s stock fell 1.9% on Monday and shed 15% last week.

Investors will get an update on the retail sector this week as several big retailers report their latest quarterly results. Home Depot and Walmart will report on Tuesday, followed by Target on Wednesday and Macy’s on Thursday.

Wall Street will also get a broader view on spending trends when the Commerce Department releases its retail sales report on Tuesday.

Investors will be watching for any signs that inflation is crimping business operations or consumer spending. Businesses have had to raise prices on a variety of goods to offset higher raw materials costs and are facing a wide range of supply chain problems. Consumers have so far taken price increases in stride, but analysts are concerned that they could start to pull back on spending because of the persistently rising inflation.

Discouraging reports on inflation from the Labor Department last week tripped up the broader market and sent major indexes to their first weekly loss in six weeks.

Elsewhere in the market Monday, buyout news helped lift several companies.

E-commerce mattress maker Casper surged 88.5% following news that is being acquired and taken private for about $308 million, less than a year after its public debut. Data center owners and operators CyrusOne rose 4.7% and and CoreSite rose 3.6% after announcing deals.

ASX 200 expected to fall​

The Australian share market looks set to give back yesterday’s gains on Tuesday. According to the latest SPI futures, the ASX 200 is expected to open the day 32 points or 0.4% lower this morning.

This follows a poor start to the week on Wall Street, which on closing sees the stocks closed mostly lower after wobbling most of Monday on Wall Street as the market comes off its first weekly loss in six weeks and investors move past the recent round of mostly solid corporate earnings.

 

[bigdog]

Asian shares slip despite Wall St gains after Biden-Xi talks

Asian shares are slipping despite stocks closing higher on Wall Street, as investors review solid U.S. earnings reports from retailers and an encouraging update on consumer spending.

apnews.com

Stocks rise on Wall Street after retail sales post big gain

By DAMIAN J. TROISE

Stocks closed higher on Wall Street Tuesday as investors reviewed solid earnings reports from big retailers and a surprisingly strong report on consumer spending.

The government reported that Americans largely shrugged off higher prices last month and stepped up their spending at retail stores and online. The Commerce Department said retail sales rose 1.7% in October. That’s the biggest gain since March and up from 0.8% in the previous month.

“It reiterates the strength of the U.S. consumer, but you have to wonder a bit as inflation expectations rise, are people rushing to get in front of that,” said Mike Stritch, chief investment officer at BMO Wealth Management.

The S&P 500 index rose 18.10 points, or 0.4%, to 4,700.90 and is sitting just below the record it set on Nov. 8. The Dow Jones Industrial Average rose 54.77 points, or 0.2%, to 36,142.22. The Nasdaq rose 120.01 points, or 0.8%, to 15,973.86.

Technology stocks did much of the heavy lifting for the benchmark S&P 500, which had slightly more gainers than losers. Chipmaker Qualcomm rose 7.9%.

A wide range of companies that rely on consumer spending made solid gains. Home Depot rose 5.7% after the home improvement retailer reported surging sales and solid profits in the third quarter amid a hot housing market. The results also lifted competitor Lowe’s by 4.2%.

Several companies that depend on consumer spending rose. Online crafts marketplace Etsy rose 5.1%. Nike rose 1.8% while Coach and Kate Spade parent Tapestry gained 1.5%.

The nation’s largest retailer, Walmart, also reported solid financial results while raising its profit forecast, but the stock fell 2.5% and gave back some of the big gains it’s made in the last few weeks.

Several other large retailers will release their latest financial results this week. Target reports its results on Wednesday and Macy’s reports results on Thursday.

Health care companies also rose. Communications companies and a makers of household goods and other consumer staples lagged the market.

Bond yields edged higher. The yield on the 10-year Treasury rose to 1.64% from 1.62% late Monday.

Investors received another encouraging economic update from the Federal Reserve, which said industrial production rebounded in October with a 1.6% gain. The gain followed a 1.3% plunge in September.

Wall Street is closely monitoring the latest economic reports for more clues as to how businesses and consumers are dealing with rising inflation. Companies have been raising prices as they face higher raw materials costs and supply chain problems. Consumers have been willing to pay the higher prices on many goods, though analysts are concerned that consumers could eventually pull back on spending because of inflation.

Heightened concerns over inflation tripped up the broader market last week following a strong run that lasted several weeks as companies reported mostly solid earnings. The latest round of earnings is nearing its finish and the market has very few singular events or economic reports to focus on through the end of the year.

“That inflation story is going to be big for the next six months and we’re going to have a lot of stops and starts on that as it evolves,” Stritch said.

ASX 200 expected to bounce back​

The Australian share market looks set to rebound on Wednesday after Wall Street charged higher. According to the latest SPI futures, the ASX 200 is expected to open the day 37 points or 0.5% higher this morning.

On closing in the United States, the Dow Jones is up 0.15%, the S&P 500 is up 0.39%, and the Nasdaq is trading 0.76% higher.

 

[bigdog]

My apologies for being late

Asian shares mostly decline after US stocks shuffle lower

Asian shares have mostly declined after indexes shuffled lower on Wall Street. Benchmarks fell in early trading in Japan, China and South Korea, but edged up in Australia.

apnews.com

US stocks shuffle lower, pulling indexes further from highs

By DAMIAN J. TROISE and STAN CHOE

NEW YORK (AP) — Stock indexes shuflfed lower on Wall Street Wednesday, pulling a bit further off their record heights.

The S&P 500 fell 12.23 points, or 0.3%, to 4,688.67 after earlier drifting between a tiny gain and a 0.4% decline. It’s sitting just 13.03 points below its all-time high set a week and a half ago.

The Dow Jones Industrial Average sank 211.17, or 0.6%, to 35,931.05, and the Nasdaq composite lost 52.28, or 0.3%, to 15,921.57.

A 4.7% drop for Visa was one of the heaviest weights on the market. It fell after Amazon said it would no longer accept U.K.-issued Visa credit cards amid a dispute about fees.

The majority of stocks in the S&P 500 also sank, while the smaller stocks in the Russell 2000 index dropped even more, down 1.2%. But gains for some heavyweight stocks helped soften the losses. Apple rose 1.6%, and Tesla climbed 3.3%. Because they’re two of the biggest stocks on Wall Street by market value, their movements carry extra weight on the S&P 500.

Yields in the U.S. government bond market, center of some of Wall Street’s most turbulent action recently, pulled back following a week of big gains. The yield on the 10-year Treasury dropped to 1.59% from 1.63% late Wednesday.

Shorter-term yields also eased back, giving up a portion of their own recent surge. Last week, hotter-than-expected inflation across the economy pushed investors to move up their expectations for when the Federal Reserve would raise interest rates off their record lows.

Stocks have been powering mostly higher over the last month as companies have widely reported much stronger profits for the summer than analysts expected. Several big retailers joined the parade on Wednesday, including Lowe’s, Target and TJX, which runs the T.J. Maxx and Marshalls stores. But the stock market’s reaction wasn’t uniform.

TJX rose 5.8% after reporting stronger revenue and earnings for the latest quarter than expected. Home improvement retailer Lowe’s inched up 0.4% as it raised its revenue forecast for the year following strong third-quarter financial results.

But Target fell 4.7% even though it also reported better earnings than expected. The company said it made less profit off each $1 in sales during the quarter, versus a year earlier, as it got squeezed by higher merchandise and supply-chain costs, among other things.

Such pressures — and how much they hit companies’ bottom lines — are under the microscope as relatively high inflation continues to sweep the world. Many companies have warned their profit margins could suffer due to supply-chain problems and higher costs for everything from workers’ wages to raw materials.

A report on the housing market showed some of those pressures. Builders broke ground on fewer homes last month than in September, contrary to economists’ expectations for growth. That could be an indication that supply shortages and higher costs are slowing the industry. But the number of building permits also rose by more than expected, perhaps showing that homebuilders see those pressures eventually easing.

ASX 200 expected to edge lower​

The Australian share market looks set to edge lower on Thursday. According to the latest SPI futures, the ASX 200 is expected to open the day 8 points or 0.1% lower this morning.

This follows a poor night on Wall Street, which on closing sees the Dow Jones down 0.58%, the S&P 500 down 0.26%, and the Nasdaq down 0.33%.

 

[bigdog]

Asian shares press higher after Wall St record

Asian stock markets are higher after Wall Street hit a record and Japanese inflation eased. Market benchmarks in Shanghai, Tokyo and Sydney advanced. Hong Kong declined.

apnews.com

US stock indexes end mixed as traders weigh retail earnings

By DAMIAN J. TROISE and ALEX VEIGA

A wobbly day on Wall Street ended with a mixed finish for stock indexes Thursday, nudging the S&P 500 and Nasdaq to new highs.

The S&P 500 rose 0.3% and the Nasdaq gained 0.5%, enough for the indexes to set new highs after a modest pullback a day earlier. After an up-and-down run this week, the indexes are on pace for a weekly gain. The Dow Jones Industrial Average slipped 0.2%, its third drop so far this week.

Roughly 67% of the companies in the S&P 500 fell, though gains by large technology companies and big retailers helped offset losses in other sectors as investors sized up the latest batch of corporate earnings reports.

Bond yields edged lower. The yield on the 10-year Treasury note fell to 1.59% from 1.60% late Wednesday.

All told, the S&P 500 rose 15.87 points to 4,704.54, while the Nasdaq gained 72.14 points to 15,993.71.

The Dow dropped 60.10 points to 35,870.95. Small company stocks also declined. The Russell 2000 index fell 13.42 points, or 0.6%, to 2,363.59.

U.S. stocks have been powering mostly higher since early October as companies reported much stronger profits for the summer than analysts expected. Nearly every company in the S&P 500 has turned in their latest financial results, with overall earnings growth of 39%. That far outpaces analysts’ expectations in June for 23% earnings growth for the quarter.

Investors have now shifted much of their focus to the threat from rising inflation. Companies are facing higher raw materials costs and supply chain problems that could crimp profits. Consumers have so far absorbed higher prices, but analysts fear they could eventually rein in their spending if higher prices persist too long.

Solid earnings results helped lift a handful of companies Thursday.

Nvidia jumped 8.3% for the biggest gain in the S&P 500 after the maker of graphics chips for gaming and artificial intelligence reported strong third-quarter financial results. Other chipmakers also gained ground. Advanced Micro Devices rose 2.4% and Micron Technology rose 2.1%.

Companies that rely on consumer spending on goods and services also fared well following solid earnings reports from retailers. Macy’s surged 21.2% after the department store chain handily beat Wall Street’s third-quarter profit forecasts. Kohl’s also reported encouraging earnings and jumped 10.6%.

Financial companies had some of the broadest losses. American Express fell 1.9% and insurer Aflac fell 1.8%.

Consumer staples makers and industrial companies also fell. Kraft Heinz slid 3.3% and General Electric fell 1.3%.

Investors received a positive update on the closely watched employment market, which is viewed as a key factor in the economy’s continued recovery.

The Labor Department said that the number of Americans applying for unemployment benefits fell for the seventh straight week to a pandemic low of 268,000.

ASX 200 expected to rise​

The Australian share market looks set to end the week on a positive note. According to the latest SPI futures, the ASX 200 is expected to open the day 6 points or 0.1% higher.

This follows a mixed night of trade on Wall Street, which on closing sees the Dow Jones down 0.17%, but the S&P 500 up 0.34% and the Nasdaq up 0.45%.

 

[bigdog]

https://apnews.com/article/business-stock-markets-asia-sydney-japan-8249391b36f95010b522ae8dd036d045

Stocks end mostly lower, but tech gains push Nasdaq higher

By DAMIAN J. TROISE and ALEX VEIGA

Wall Street closed out a week of choppy trading with stocks mostly lower Friday, though gains for several tech companies pushed the Nasdaq composite to another record high and its first close over 16,000 points.

The S&P 500 index gave up 0.1% a day after setting an all-time high. The Dow Jones Industrial Average fell 0.7% and the Nasdaq composite rose 0.4%. Despite an up-and-down week, the S&P 500 and Nasdaq notched weekly gains, while the Dow posted its second straight weekly loss.

Some 66% of companies in the S&P 500 fell, with financial and energy stocks accounting for a big share of the pullback. Those losses outweighed gains in technology and a mix of companies that rely on consumer spending.

Investors continued to review earnings from a range of retailers to essentially close out the latest round of corporate report cards. They’re also focusing on the potential risks to the economy and corporate profits from rising inflation, which has pushed stocks into a bumpier path after weeks of solid gains.

“There’s still a wide range of outcomes and perspectives around whether inflation is becoming more imbedded and durable or will be transitory,” said Bill Northey, senior investment director at U.S. Bank Wealth Management.

The S&P 500 fell 6.58 points to 4,697.96. The Dow slid 268.97 points to 35,601.98, its third straight drop. The Nasdaq added 63.73 points to 16,057.44, for its sixth straight gain.

Smaller-company stocks fell more than the broader market. The Russell 2000 index lost 20.43 points, or 0.9%, to 2,343.16.

The yield on the 10-year Treasury fell to 1.54% from 1.59% late Thursday. Falling bond yields weighed down banks, which rely on higher yields to charge more lucrative interest on loans. JPMorgan Chase dropped 1.3%.

U.S. crude oil prices fell 3.7%, dragging down energy stocks. Exxon Mobil shed 4.6%.

TurboTax maker Intuit jumped 10.1% for the biggest gain in the S&P 500 after raising its profit forecast for its fiscal year. Software maker Adobe rose 2.6%.

Several companies that rely on direct consumer spending for goods and services also rose. Tesla added 3.7% and Nike rose 2.1%.

Moderna climbed 4.9% and Pfizer fell 1.2% after the Food and Drug Administration opened up coronavirus booster shots from the two companies to all adults.

U.S. stocks have been mostly pushing higher since early October as companies reported much stronger profits for the summer than analysts expected. More than 95% of companies in the S&P 500 have reported their latest quarterly results in recent weeks, posting overall earnings growth of about 40%. That outpaces analysts’ forecasts for 23% growth made back in June.

Still, companies are facing higher raw materials costs and supply chain problems that could crimp future profits. Consumers have so far absorbed higher prices, but analysts fear they could eventually rein in their spending if higher prices persist too long.

The situation is putting pressure on the Federal Reserve to move faster to rein in its ultra-low-rate policies in order to combat rising prices. On Friday, analysts at Bank of America projected that the Fed will likely start raising its benchmark interest rate in the second quarter of 2022, two quarters earlier than they had previously forecast.

Businesses are facing higher raw materials costs and supply chain problems that have been cutting into operations. That has raised concerns that a wide range of industries could see growth stunted into 2022.

The latest examples include Williams-Sonoma. The seller of cookware and home furnishings warned investors that supply chain problems could hurt its inventory through the middle of next year. The stock fell 1.5%.

Applied Materials fell 5.5% after reporting weak financial results and a disappointing profit forecast partly because of supply chain problems.

“Those (supply chain) problems will likely clear over time, but they may not clear in time for the holiday season,” Northey said. “That may cause demand to be unmet or shift to early next year.”

Wall Street is also worried about consumers eventually pulling back on spending because of higher prices. Prices for U.S. consumers jumped 6.2% in October compared with a year earlier, leaving families facing their highest inflation rate since 1990, the Labor Department said.

The higher prices have yet to derail consumer spending, though, and retail sales jumped 1.7% in October, according to the Commerce Department. That was the biggest month-to-month gain since March.

 

[bigdog]

ASX 200 expected to sink​

The Australian share market looks set to start the week deep in the red. According to the latest SPI futures, the ASX 200 is expected to open the day 45 points or 0.6% lower this morning.

This follows a mixed end to the week on Wall Street, which saw the Dow Jones fall 0.75%, the S&P 500 drop 0.14%, but the Nasdaq buck the trend by pushing 0.4% higher.

 

[bigdog]

https://apnews.com/article/business-china-asia-beijing-hong-kong-018604d0fea11ed3acc6225c0b58f543

A late afternoon slump leaves major US indexes mostly lower

By DAMIAN J. TROISE and ALEX VEIGA

A choppy day of trading on Wall Street ended with stocks mostly lower Monday, as a late-afternoon burst of selling derailed the market from another all-time high.

The S&P 500 fell 0.3% after having been up as much as 1% earlier in the day and on pace to eclipse the record high it set last Thursday. The Dow Jones Industrial Average eked out a 0.1% gain, while the Nasdaq shed an early gain and slid 1.3% below the all-time high it set on Friday.

Bond yields moved solidly higher. Gold prices fell and energy futures mostly rose.

The market was higher for much of the day as traders were relieved to learn that President Joe Biden would nominate Jerome Powell for a second four-year term at the helm of the Federal Reserve, a vote of confidence in Powell’s handling of central bank policies during the brutal disruptions caused by the coronavirus pandemic.

While stocks initially rallied on the news, bonds sold off, pushing yields broadly higher. The yield on the 10-year Treasury rose to 1.63% from 1.54% late Friday.

Higher Treasury yields make the more expensive areas of the market, like technology stocks, less attractive, which may explain why there was more selling in stocks toward the end of the day as the bond market shifted.

“Growth areas of (the stock) market do not like higher bond yields,” said Willie Delwiche, investment strategist at All Star Charts. “Energy and financials, however, loved them.”

The S&P 500 fell 15.02 points to 4,682.94. The Dow gained 17.27 points to 35,619.25. The tech-heavy Nasdaq gave up 202.68 points to 15,854.76.

Small company stocks also fell. The Russell 2000 index dropped 11.81 points, or 0.5%, to 2,331.35.

U.S. stocks have been mostly pushing higher since early October as companies reported much stronger profits for the summer than analysts expected. The benchmark S&P 500 has posted a weekly gain in eight out of the last nine weeks, notching successive record highs along the way.

Still, investors are seeking reassurance about how companies will fare in coming months as they grapple with higher raw materials costs and supply chain problems that could crimp future profits. Consumers have so far absorbed higher prices, but analysts fear they could eventually rein in their spending if higher prices persist too long.

The Federal Reserve is starting to trim bond purchases that have helped maintain low interest rates in an effort to support the economy and markets as rising inflation hangs over the economic recovery. Investors are closely watching the Fed to see whether pressure from rising inflation prompts it to speed up its plans for trimming bond purchases and raising its benchmark interest rate.

“Powell getting the nod is a sign that Biden is staying the course on monetary policy and the Fed is steadily moving toward normalizing policy,” said Brad McMillan, chief investment officer for Commonwealth Financial Network. “On the whole, the Fed is going to continue to be a force for monetary stability.”

More than 55% of the stocks in the S&P 500 rose Monday, but losses by big technology and communication companies outweighed gains elsewhere in the benchmark index. Chipmaker Nvidia slid 3.1% and Netflix fell 2.9%.

Rising bond yields helped boost banks, which rely on higher yields to charge more lucrative interest on loans. Bank of America rose 1.9%.

Energy companies were among the gainers, getting a bump as U.S. crude oil prices rose 0.9%. Chevron closed 1.8% higher. Companies that make household and personal care products made solid gains. Walmart rose 1.7% and supermarket operator Kroger rose 4.8%.

Companies that rely on consumer spending also weighed on the market, led by a pullback in shares of Target, which fell 2.5%, and Amazon, which lost 2.8%. Those retailers are on the cusp of the busy holiday shopping season, which traditionally kicks off right after the Thanksgiving holiday.

The dollar also strengthened against other currencies. The price of gold, a haven for when investors feel anxious, fell 2.4%.

Markets in Europe and Asia closed mixed as a resurgence of coronavirus outbreaks prompted some countries to look to stricter precautions to curb yet another wave of the pandemic.

Investors face a relatively light schedule of economic updates during this holiday-shortened week. The National Association of Realtors reported surprisingly good sales for previously occupied homes in October on Monday. The Commerce Department will report October data for new home sales on Wednesday, along with data on third-quarter gross domestic product.

Markets in the U.S. will be closed on Thursday for the Thanksgiving holiday. They will also close early on Friday.

ASX 200 expected to edge higher​

The Australian share market looks set to return to form on Tuesday. According to the latest SPI futures, the ASX 200 is expected to open the day 7 points or 0.1% higher this morning.

A late afternoon slump leaves major US indexes mostly lower, which on closing sees the Dow Jones up 0.5%, the S&P 500 down 0.32%, but the Nasdaq trading 1.26% lower.

 

[bigdog]

https://apnews.com/article/joe-biden-business-asia-hong-kong-seoul-2185bb1b6db142e665cd4e0d6d02385b

Stocks end mixed, oil prices rise despite release of crude

By DAMIAN J. TROISE and ALEX VEIGA

Wall Street closed out a wobbly day of trading Tuesday with a mixed finish for the major stock indexes, as gains in banks and energy companies tempered losses elsewhere in the market.

The S&P 500 managed to rise 0.2% after wavering between small gains and losses for much of the day. The benchmark index was coming off two straight drops after setting a record high last Thursday. The Dow Jones Industrial Average rose 0.5%, while the Nasdaq composite closed 0.5% lower.

More than 60% of the stocks in the S&P 500 rose. Banks, energy stocks and household goods companies rose. Those gains were tempered by losses in technology and communication stocks, and a mix of companies that rely on consumer spending.

The price of U.S. crude oil rose 2.3% and wholesale gasoline rose 3.4% despite the fact that President Joe Biden ordered 50 million barrels of oil released from the nation’s strategic reserve to help bring down energy costs. The move was made in concert with other big oil-consuming nations.

Bond yields rose, adding to a broad move higher a day before that helped spur a late-afternoon sell-off in big technology and consumer-oriented stocks. Such stocks have seen their prices soar during the pandemic and can look less attractive when bond yields rise sharply.

“We’re also seeing a continuation of the upward move today in the 10-year (Treasury) yield, but obviously that did not seem to hold back the Dow or the S&P 500,” said Sam Stovall, chief investment strategist at CFRA.

The S&P 500 rose 7.76 points to 4,690.70. The Dow gained 194.55 points to 35,813.80. The Nasdaq slipped 79.62 points to 15,775.14.

Small company stocks also lost ground. The Russell 2000 index fell 3.49 points, or 0.1%, to 2,327.86.

Bond yields rose. The yield on the 10-year Treasury rose to 1.68% from 1.63% late Monday. That helped send banks higher. JPMorgan Chase rose 2.4%.

Oil and gas companies made solid gains as energy prices rose. Devon Energy rose 5.6%.

Several travel-related companies gained ground as people prepare to travel for the Thanksgiving holiday. Hilton Worldwide rose 1.3% and Expedia Group gained 2.7%.

Retailers were mixed ahead of the official start of the key holiday shopping season. Discount retailer Dollar Tree jumped 9.2% for the biggest gain in the S&P 500. Starbucks rose 1.9%. Best Buy slumped 12.3%, the biggest drop in the S&P 500, as concerns about tighter margins outweighed solid earnings.

Technology and communications companies also weighed on the broader market. Adobe fell 1.3% and Intel dropped 1.5%.

Zoom Video sank 14.7% a day after the video conferencing company reported that its third-quarter revenue growth slowed.

Stocks are likely to see more mixed trading this week, with markets closing on Thursday for Thanksgiving and then closing early on Friday.

“In this holiday-shortened week, lower volume leads to higher volatility,” Stovall said.

Still, Wall Street will get a few pieces of economic data on Wednesday that could give investors a better sense of the economic recovery’s pace and breadth. The Labor Department will release its weekly report on unemployment benefits. The Commerce Department releases data on third-quarter gross domestic product and its new home sales report for October.

Also on Wednesday, the Federal Reserve will release minutes from its October interest-rate meeting, potentially giving investors more details on the central bank’s plan to start trimming bond purchases that have helped keep interest rates low.

Investors have been watching to see if pressure from rising inflation will goad the Fed into speeding up its plans for trimming bond purchases and raising its benchmark interest rate.

ASX 200 expected to fall​

The Australian share market looks set to give back some of yesterday’s gains on Wednesday. According to the latest SPI futures, the ASX 200 is expected to open the day 18 points or 0.25% lower this morning.

On closing in the United States, the Dow Jones is up 0.55%, the S&P 500 is up 0.17%, but the Nasdaq is trading 0.5% lower.